An August RBA rate cut is now back to a near line-ball call, with the market pricing in a 53% chance of a 25bp cut on August 6 (the next RBA meeting) – from around 68% earlier today.
While the RBA minutes were certainly not hawkish they were not as dovish as some would have liked, which is contributing to the trimming back of rate cut expectations.
- Bids in AUD/USD are building: bids initially 0.9145/55, then 0.9110/20 and then around 0.9100.
- On the topside, selling ahead of 0.9200, starting to cluster from 0.9185 and higher.
